Good Financial
Strength
As a borrower, you need to prove that you have sufficient cash reserves for monthly loan payments and to afford any holding costs, such as insurance and taxes.
Equity or Down
Payment
The minimum typically ranges from 30% to 40% for commercial properties. There are cases when a hard money lender from Houston will let you use multiple properties to secure one loan. You are more likely to be approved if you have a larger equity or down payment.
Commercial Real
Estate Experience
A typical hard money lender in Houston prefers borrowers with plenty of experience in commercial real estate. If you are new to this industry, they may require you to submit more details about your project, including a solid exit strategy and how you plan to repay your loan.
